For the most recent year, Virtual Gaming Systems had net income of $560,000. The accounting records show depreciation expense of $41,000, increase of accounts receivable $11,000, and decrease of accounts payable $21,000. Using the indirect method, compute net cash flows from operating activities. (List cash outflows and any decrease in cash as negative amounts.) Virtual Gaming Systems Statement of Cash Flows (Partial) Cash flows from operating activities Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities
For the most recent year, Virtual Gaming Systems had net income of $560,000. The accounting records show depreciation expense of $41,000, increase of accounts receivable $11,000, and decrease of accounts payable $21,000. Using the indirect method, compute net cash flows from operating activities. (List cash outflows and any decrease in cash as negative amounts.) Virtual Gaming Systems Statement of Cash Flows (Partial) Cash flows from operating activities Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:For the most recent year, Virtual Gaming Systems had a net income of $560,000. The accounting records show a depreciation expense of $41,000, an increase of accounts receivable by $11,000, and a decrease of accounts payable by $21,000.
Using the indirect method, compute net cash flows from operating activities. (List cash outflows and any decrease in cash as negative amounts.)
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**Virtual Gaming Systems**
**Statement of Cash Flows (Partial)**
| Cash flows from operating activities | | |
|--------------------------------------|---|---|
| | | |
| Adjustments to reconcile net income to net cash flows from operating activities: | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| **Net cash flows from operating activities** | | |
(Note: Specific amounts and entries for the adjustments and net cash flow calculations are not provided in the image and should be calculated based on the given data.)
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